The Israeli Model

Strategypage reports good economic news out of Iraq.

One of the things that has been changed in Iraq is the way the economy is regulated. Since Saddam was tossed out in 2003, the economy has been governed by Western rules. As a result, GDP per capita doubled by the end of 2005, and the GDP is expected to grow another 49 percent by 2008. All this despite continued attacks by Sunni Arab rebels on oil facilities and other economic targets. It's much easier to start a business in Iraq now, even though there's still a lot of corruption. The big change is that now the corruption is illegal, and there is even progress in prosecuting the government officials who take bribes or try to shake down businessmen. Lebanon is the only other Arab state to run its economy in a Western fashion, and they have thrived. However, Lebanon also interrupted their success story with a fifteen year (1975-90) civil war. Iraqis are well aware of that, and have no illusions about what happens if everyone does not get along. Another thing haunting Iraqis is the most successful economy in the region; Israel. This is also the country most like the economically successful Western states. Iraqis can't really talk about it openly, but the "Israeli Model" is discussed. A real democracy, peace at home, a flourishing economy, a powerful military, and nuclear weapons. Well, no one said it was a perfect model for Iraq.

Read it here.

This is not insignificant progress. Ultimately economic recovery and the opportunities it brings will be the factor that determines the success or failure of the new Iraqi regime and the US actions that brought it into existence.